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Technology giants in flap over gift envelopes

By Meng Jing (China Daily) Updated: 2015-02-04 07:03

"The red envelope feature is a very effective way of encouraging people to bind their debit or credit cards to apps, given the popularity now for mobile payment users," said Li Ye, an analyst with the Beijing-based Internet consultancy Analysys International, adding that it is only sensible business for WeChat to have blocked access from Alipay Wallet.

"The red envelope service is the latest must-have service during the festival. The mobile payment market is booming in China. Every company is trying whatever they can to attract potential users," she said.

Statistics from WeChat, which claims to have 468 million monthly active users, show that in the 10 days around the 2014 Spring Festival, more than 8 million users took part in the scheme, exchanging over 40 million red envelopes.

Wang Weidong, an analyst with iResearch Consulting Group, is betting on WeChat eventually claiming the most red envelope participants during the upcoming Spring Festival, given its dominance as a social tool.

"However, that doesn't mean there isn't room for other players. After all, Alipay Wallet has 180 million users," said Wang.

"(The social media platform of) Weibo Corp, in which Alibaba has a stake, has also launched a red envelope service based on its own specific users. Different companies are playing it differently."

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